XML 32 R16.htm IDEA: XBRL DOCUMENT
v3.25.3

INCOME TAXES | 12 Months Ended
--- | ---
Sep. 30, 2025
Income Tax Disclosure [Abstract] |
INCOME TAXES | 8. INCOME TAXES Significant components of income before income taxes and income tax expense for the fiscal years ended September 30, 2025, September 30, 2024 and September 30, 2023 consisted of the following:
(in thousands) |  | September 30, 2025 |  | September 30, 2024 |  | September 30, 2023
Components of income before income taxes: |  |  |  |  |  |
United States |  | $ | (42,814) |  |  | $ | 545,826 |  |  | $ | 817,853 |
Non-U.S |  | 24,224 |  |  | 41,411 |  |  | 32,437 |
(Loss) Income before income taxes |  | $ | (18,590) |  |  | $ | 587,237 |  |  | $ | 850,290 |
Income tax expense: |  |  |  |  |  |
Current: |  |  |  |  |  |
United States: |  |  |  |  |  |
Federal |  | $ | 26,763 |  |  | $ | 82,125 |  |  | $ | 110,714 |
State |  | 9,115 |  |  | 16,012 |  |  | 25,556 |
Non-U.S: |  | 8,745 |  |  | 12,859 |  |  | 11,261 |
Current income tax expense |  | $ | 44,623 |  |  | $ | 110,996 |  |  | $ | 147,531 |
Deferred: |  |  |  |  |  |
United States: |  |  |  |  |  |
Federal |  | $ | (40,278) |  |  | $ | 4,100 |  |  | $ | 12,670 |
State |  | (6,240) |  |  | 351 |  |  | 1,274 |
Non-U.S: |  | (1,520) |  |  | (1,082) |  |  | (1,085) |
Deferred income (benefit) tax expense |  | (48,038) |  |  | 3,369 |  |  | 12,860 |
Income tax expense |  | $ | (3,415) |  |  | $ | 114,365 |  |  | $ | 160,391 |
Differences between the statutory federal income tax rate and effective income tax rate are summarized below:
(in thousands) |  | September 30, 2025 |  | September 30, 2024 |  | September 30, 2023
Statutory federal tax |  | 21 | % |  | 21 | % |  | 21 | %
Adjustments to reconcile to the effective income tax rate: |  |  |  |  |  |
State income taxes |  | 1 | % |  | 2 | % |  | 3 | %
Stock-based compensation |  | (5) | % |  | (2) | % |  | (1) | %
Foreign rate differential |  | (8) | % |  | — | % |  | — | %
Disallowed loss on sale of business |  | (23) | % |  | — | % |  | — | %
Solar tax credits |  | — | % |  | — | % |  | (5) | %
General business credits |  | 5 | % |  | — | % |  | — | %
Nondeductible executive compensation |  | (11) | % |  | 1 | % |  | — | %
Nondeductible goodwill |  | (16) | % |  | — | % |  | — | %
Pillar 2 Income Taxes |  | (1) | % |  | — | % |  | — | %
Foreign-derived intangible income |  | 1 | % |  | — | % |  | — | %
Non-deductible meals & entertainment |  | (2) | % |  | — | % |  | — | %
Changes in valuation allowances |  | 1 | % |  | — | % |  | — | %
Changes in reserves for uncertain tax positions |  | (7) | % |  | — | % |  | — | %
Nontaxable solar tax credits |  | 66 | % |  | (3) | % |  | — | %
Return to provision |  | (2) | % |  | — | % |  | — | %
Other |  | (2) | % |  | — | % |  | 1 | %
Effective income tax rate |  | 18 | % |  | 19 | % |  | 19 | %
The Company’s effective tax rate for fiscal 2025 differs from the statutory rate primarily due to disallowed tax loss on the sale of Northwest Polymers Inc. of $4,219 and disallowed goodwill impairment of $3,001 offset by the tax benefit of nontaxable solar manufacturing credits of $12,258. The Company’s effective tax rate for fiscal 2024 differs from the statutory rate primarily due to state income taxes of $12,805 offset by the tax benefit of nontaxable solar manufacturing credits of $18,972 and the excess tax benefits from share-based compensation of $13,773. The Company’s effective tax rate for fiscal 2023 differs from the statutory rate primarily due to state income taxes of $21,630, and solar tax credits of $39,493. Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The components of the net deferred income tax assets are as follows:
(in thousands) |  | September 30, 2025 |  | September 30, 2024
Deferred tax assets: |  |  |  |
Accrued liabilities and reserves |  | $ | 38,820 |  |  | $ | 39,232 |
Tax loss and credit carryforwards |  | 20,506 |  |  | 20,436 |
Capitalized research and development |  | 10,854 |  |  | 8,446 |
Inventory |  | 17,089 |  |  | 14,274 |
Lease obligations |  | 42,544 |  |  | 46,179 |
Other |  | 1,939 |  |  | 1,121 |
|  | $ | 131,752 |  |  | $ | 129,688 |
Deferred tax liabilities: |  |  |  |
Property, plant and equipment |  | $ | (31,773) |  |  | $ | (40,373) |
Intangible assets |  | (11,961) |  |  | (43,487) |
Right-of-use assets, net |  | (38,932) |  |  | (44,722) |
Other |  | (5,820) |  |  | (6,609) |
|  | $ | (88,486) |  |  | $ | (135,191) |
Net deferred tax liability before valuation allowance |  | 43,266 |  |  | (5,503) |
Valuation allowance |  | (20,854) |  |  | (20,517) |
Net deferred tax liability |  | $ | 22,412 |  |  | $ | (26,020) |
As of September 30, 2025, the Company has $24,687 of state net operating loss carryforwards which expire beginning in 2026 through 2045. In certain non-U.S. jurisdictions, the Company has net operating loss carryforwards of $73,879 which have an expiration period ranging from five years to unlimited. Valuation allowances have been established on net operating losses and other deferred tax assets in Luxembourg, Australia, France, China, and other foreign and United States state jurisdictions, as a result of the Company's determination that there is less than 50% likelihood that these assets will be realized. Evidence for this determination includes three year cumulative loss positions, future reversal of temporary differences, and expectations of future losses. As of September 30, 2025, and September 30, 2024, the Company had unrecognized tax benefits of $4,517 and $3,367 which, if recognized, would positively benefit the effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. As of September 30, 2025 and September 30, 2024, the Company had accrued interest and penalties of $648 and $516, respectively, in the consolidated balance sheets. A reconciliation of the beginning and ending amount of unrecognized tax benefit, excluding interest and penalties, is as follows:
(in thousands) |  | For the period from September 30, 2022 to September 30, 2025
Balance as of September 30, 2022 |  | $ | 985 |
Additions based on tax positions related to prior years |  | (75) |
Additions based on tax positions related to current year |  | 1,792 |
Settlements |  | (121) |
Balance as of September 30, 2023 |  | 2,581 |
Additions based on tax positions related to prior years |  | 84 |
Additions based on tax positions related to current year |  | 1,287 |
Settlements |  | (585) |
Balance as of September 30, 2024 |  | 3,367 |
Additions based on tax positions related to prior years |  | 578 |
Additions based on tax positions related to current year |  | 754 |
Expiration of statute of limitations |  | (182) |
Balance as of September 30, 2025 |  | $ | 4,517 |
During fiscal 2025, the balance of unrecognized tax benefits increased by $1,332 as a result of federal and various state jurisdictions’ uncertain positions, partially offset by a decrease of $182 as a result of expiration of statute of limitations. The related accrued penalties and interest for uncertain tax positions increased by $132. During fiscal 2024, the balance of unrecognized tax benefits increased by $1,370 as a result of federal and various state jurisdictions’ uncertain positions, partially offset by a decrease of $585 as a result of completing tax audits. The related accrued penalties and interest for uncertain tax positions increased by $281. During fiscal 2023, the balance of unrecognized tax benefits increased by $1,792 as a result of federal and various state jurisdictions’ uncertain positions, partially offset by a decrease of $196 as a result of completing tax audits and the expiration of the statute of limitations in various state jurisdictions. The related accrued penalties and interest for uncertain tax positions increased by $158. Many of the Company’s uncertain tax positions relate to tax years that remain subject to audit by the taxing authorities. The following tax years remain subject to examination by the major tax jurisdictions as follows:
Jurisdiction |  | Years Open to Audit
United States |  | 2022, 2023 and 2024
The Company's income tax returns are examined periodically by various taxing authorities. The Company is currently under examination in various state jurisdictions. Based on the current status of its income tax audits, the Company believes that it is reasonably possible that there would be no material changes to the unrecognized tax benefits in the next twelve months. Other Income Tax Matters — As of September 30, 2025, certain subsidiaries had approximately $182,176 of undistributed income that the Company intends to permanently reinvest. The Company recorded no additional liability for United States or non-U.S income taxes on the undistributed earnings. A liability could arise if the Company's intention to permanently reinvest such income were to change and amounts are distributed by such subsidiaries or if such subsidiaries are ultimately disposed of. It is not practicable to estimate the additional income taxes related to permanently reinvested income or the basis differences related to investments in subsidiaries. The calculation of the Company's tax liabilities involves dealing with uncertainties in the application of complex tax regulations in a multitude of jurisdictions across its global operations. The Company records tax liabilities for anticipated tax audit issues in the United States and other tax jurisdictions based on the Company's estimate of whether, and the extent to which, additional taxes will be due. These tax liabilities are reflected net of related tax loss carry-forwards. The Company adjusts these reserves in light of changing facts and circumstances. However, due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the Company's current estimate of the tax liabilities.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477617/942-740-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478822/944-740-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration